CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: July, 7, 2021 Action Required: Approval of Resolution to Appropriate Funds Presenter: Chip Boyles, City Manager Staff Contacts: Chip Boyles, City Manager Title: Resolution Appropriating Funds from the American Rescue Plan for Eligible Local Activities - $1,986,100 Background and Discussion: On March 11, 2021, United States President Biden signed the American Rescue Plan Act of 2021 (the Act) to provide additional relief for individuals and businesses affected by the coronavirus pandemic. The Act includes funding for state, local, and tribal governments as well as education and COVID-19-related testing, vaccination support, and research. The City of Charlottesville is to receive direct funding from the American Rescue Plan (ARP) in two tranches: $9,804,854 in May, 2021 and $9,804,854 in May, 2022 for a total of $19,609,708. These funds must be obligated by December 31, 2024. City staff have begun the process to identify first urgent community needs resulting from the impacts of the COVID-19 virus. Further program development will allow additional agency and community requests for eligible funding needs. An eligible use of the ARP funds, replacement of loss local government revenues during the pandemic, is a priority for the ARP funds, and will be brought before Council at a future Council meeting. However, the first use of ARP funding by the City of Charlottesville is for urgent financial needs of the City and community, including community safety, housing assistance, business recovery and city operations. Community Support Peace in the Streets $95,000 Mentoring at Lugo-McGinnis Academy $153,500 Legal Aid Justice Center Eviction Prevention $300,000 Emergency Relief and Community Assistance $811,100 Department of Human Services COVID Related Assistance $176,500 Business Support Department of Economic Development Recovery Roadmap $250,000 City Staff Support City Hall Access Reconfiguration $200,000 Per City Code 2-42(b) City Council may, by unanimous consent, add the introduction and first reading of this resolution to the agenda for its July 7, 2021 special meeting. City Council cannot vote on the Resolution until a second reading is conducted. Alignment with City Council’s Vision and Strategic Plan: The usages and projects proposed to be funded with the ARP funds contributes to Goal 1 of the Strategic Plan, to be an inclusive community of self-sufficient residents; Goal 2 to be a healthy and safe City; Goal 4 to have a strong, creative, and diversified community; and Goal 5 to be a well managed and responsive organization. Community Engagement: Community engagement and review for the full ARP Program will be conducted during program development over the next 12 months. The current requests are emergency in nature with community input limited prior to the public comment period of the July 19th regular City Council meeting and written comment to City Council prior to that meeting. Budgetary Impact: The amount of the ARP funds was unknown during the development of the FY 2022 City Budget and not included. The approval of this resolution has no immediate impact on the FY 2022 General Fund budget. However should these funds not be appropriated, the usage of previously appropriated funding may be necessary to fund these activities resulting in reduced funding for previously approved usages. Recommendation: Staff recommends approval of the Resolution and appropriation of ARP funds. Alternatives: City Council may elect not to appropriate funding for these purposes at this time or may elect other ARP eligible program expenditures. Attachments: Resolution for the Appropriation of funds. American Rescue Plan Act Funding Usage Details RESOLUTION APPROPRIATING FUNDING FOR American Rescue Plan for Eligible Local Activities $1,986,100 BE IT RESOLVED by the Council of the City of Charlottesville, Virginia that the sum of $1,986,100 from American Rescue Plan funding is hereby designated to be available for expenditure, at the discretion of the City Manager, for costs associated with eligible ARP expenditures for the following purposes and amounts: Community Support Peace in the Streets $95,000 Mentoring at Lugo-McGinnis Academy $153,500 Legal Aid Justice Center Eviction Prevention $300,000 Emergency Relief and Community Assistance $811,100 Department of Human Services COVID Related Assistance $176,500 Business Support Department of Economic Development Recovery Roadmap $250,000 City Staff Support City Hall Access Reconfiguration $200,000 Revenues - $1,986,100 Fund: 207 Cost Center: 9900000000 G/L Account: 430120 Expenditures $95,000 Fund: 207 I/O: 1900420 G/L: 599999 $153,500 Fund: 207 I/O: 1900420 G/L: 599999 $300,000 Fund: 207 I/O: 1900420 G/L: 599999 $811,100 Fund: 207 I/O: 1900421 G/L: 599999 $176,500 Fund: 207 I/O: 1900421 G/L: 599999 $250,000 Fund: 207 I/O: 1900421 G/L: 599999 $200,000 Fund: 207 I/O: 1900420 G/L: 599999 American Rescue Plan Act Funding Usage Details Department of Human Services COVID-related Assistance : $176,471.79 • Community Crisis Response Funds (crisis needs beyond rental & food assistance supported by Pathways fund) - $75,000 • COVID related staff capacity including hotline operators, relief navigation & service coordination - $30,571.79 • Community & neighborhood support activities - $70,899.89 Emergency Assistance for Community in Crisis: $811,058.24 • Emergency relief for distribution through the existing hotline - $400,000 • Support for emergency feeding programs - $50,000 • Support for emergency shelter programs through hotels or congregate settings - $100,000 • External support for hotline operations - $36,058.24 • Support for community resilience activities, including neighborhood peer services, & Black mental health - $225,000 Legal Aid Justice Center Eviction Prevention – $300,000 LAJC proposes a multicomponent eviction prevention project designed to provide: • Legal representation at eviction proceedings • Community outreach & education activities • Rent relief navigation & support In 2019, there were 646 eviction matters against Charlottesville residents and over 1,200 against Albemarle residents. As eviction moratoria expire, advocates fear a significant increase in these proceedings. Combining legal expertise with outreach and support in accessing available emergency rental relief is a promising approach to avoiding mass evictions. The U.S. Department of Housing and Urban Development estimates the public cost of homelessness at $100,000 for each person without adequate housing. Local advocates calculate that number at $40,000 for this region. City Staff Support City Hall Access Reconfiguration - $200,000 In order to contain and mitigate the spread of COVID-19 funds are being requested for "capital investments in public facilities to meet pandemic operational needs." The funds would be used to reconfigure the lobby of City Hall to create expanded work areas with sufficient space to facilitate safe in person interaction between staff and the public. Improvements would be made to the Treasurer’s Office and Utility Billing Office. A glass-enclosed customer service window for the Revenue Compliance area of the Treasurer's Office would be created by extending the lobby area into the middle office with the addition of an entryway directly from the lobby. This would expand the customer-facing service areas and allow for customers to be spread apart and serve Revenue Compliance customers through a glass barrier instead of allowing them direct access into a non-secure area without any COVID mitigation measures. Similar types of improvements would be made in the Utility Billing Office for areas where customers meet with staff to answer questions, make payment arrangements, and other collection activities. Additionally, funds would be used to create a permanent glass barrier at the customer service counter in the lobby. A temporary plexiglass barrier has been in place for the last year. A more permanent solution that addresses the cosmetic, architecture, safety, and audio concerns of interacting with the public in that space is desired. Memo TO: Chip Boyles, City Manager FROM: Chris Engel, Director of Economic Development DATE: July 9, 2021 SUBJECT: American Rescue Plan Funding for Recovery Roadmap Plan At a work session, in the fall of 2020, the City Council indicated that helping businesses recover from the impacts of the pandemic was a priority. The Office of Economic Development (OED) subsequently initiated a process to establish a Recovery Roadmap: A Plan for Business Recovery in Charlottesville beginning in the winter of 2021. With the participation and input from Charlottesville businesses and stakeholders, the OED established this written plan with a series of practical initiatives to assist the recovery of the Charlottesville economy. The plan’s purpose is to holistically and thoughtfully assist businesses throughout the City of Charlottesville as they recover from the COVID-19 pandemic by identifying key local economic development programs to strengthen and sustain the Charlottesville entrepreneurial ecosystem in the next 12-18 months. There are fifteen enumerated action items included in the plan as shown on the attached summary. A majority of these can be funded with existing resources while several cannot. The fived identified as needing funding are planned to be funded by a $250,000 allocation from the city’s portion of the federal American Rescue Plan. The specifics related to each of these items are outlined in the table below. Precise funding amounts per initiative are not yet fully known but are estimated with final determination as each element is finalized. Any surplus amounts, should there be any, will go to further supplement the other initiatives in the plan. Initiative Process/Selection Method Evaluation Method 1.2 Provide technical assistance Businesses will be selected Evaluation will be conducted grants for services critical to based on need (i.e. a via follow-up conversation with business recovery (e.g., demonstrated absence of key businesses receiving services marketing/advertising, marketing collateral) and assist three and six months following. marketing collateral, social those businesses most media, photography, negatively impacted by the videography, websites, pandemic with an emphasis on strategic planning, etc.). Page 1 of 2 Estimated funding/impact: businesses owned by socially $25,000/40-50 businesses disadvantaged individuals. 2.4 Explore creating a specific Individuals will be screened Evaluation will occur following hospitality focused training based upon employer training and then every six program that prepares and requirements and interviewed months for two years. Both connects employees with job by a panel prior to acceptance employees and employers will opportunities in this sector. in the program. be surveyed as to the impact of the program. Longevity of employment, additional Estimated funding/impact: certifications and wage growth $120,000/40-50 individuals/20 will be assessed. businesses 3.1 Explore the creation of Not applicable. If approved, by ordinance, the Designated Outdoor pilot program would be Refreshment Areas in concert evaluated by internal and with internal and external external stakeholders after six stakeholders as a tool to help months. revive business areas. Estimated funding/impact: $5,000/25 businesses 4.1 Create a marketing Selection based on Evaluation will be conducted leverage grant program to presentation of a valid via survey with businesses extend the reach of already- marketing/advertising plan receiving grants three and six planned marketing dollars and with funding commitment. months following. Success assist with messaging on Assistance to those businesses measures to vary with reopening. most negatively impacted by marketing medium with focus the pandemic and businesses on increased exposure and owned by socially sales. Estimated funding/impact: disadvantaged individuals will $50,000/25 businesses receive priority. 4.2 Create a Co-op program Selection based on a Evaluation will be conducted that allows access to reduced- willingness to partner in co-op via survey with businesses cost advertising and production program with other receiving grants three and six assistance. businesses. Assistance to those months following. Success businesses most negatively measures to vary with impacted by the pandemic and marketing medium with focus Estimated funding/impact: businesses owned by socially on increased exposure and $50,000/25 businesses disadvantaged individuals will sales. receive priority.